аЯрЁБс>ўџ ?Aўџџџ@џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅС5@ №П/!bjbjЯ2Я2 72­X­XџџџџџџˆPPPPPPP Є Є Є 8м $  ;2( ( "J J J J J J КММММММ$mRПдрPАJ J ААрPPJ J ѕpppАPJ PJ КpАКp$p”:N,PPжJ  ьaАŽтШЄ Ю:z К 0;„R“F“жd$ˆPPPP“PжфJ Ц DpT XXJ J J рр  Є N"  Є Church leaders’ statement on Economic Partnership Agreements Kenya and fifteen other countries in the Eastern and Southern Africa (ESA) are currently negotiating a reciprocal free trade agreement with the European Union (EU). EPAs are basically reciprocal free trade agreements that upon signing will open up our markets to the products and services from the European Union. The objectives of the Economic Partnership Agreements (EPAs) are poverty reduction and sustainable development through regional integration and liberalized trade between the EU and the African, Caribbean and Pacific (ACP) countries. These negotiations which begun in 2002 and are due to end by December 2007, are taking place in the context of the ACP-EU Cotonuo Agreement. We as church representatives of churches in Kenya hereby present our position on EPAs::- While we appreciate the development objectives of the Cotonuo Partnership Agreements, we are mindful that in the current negotiations, the European Union has lost sight of these objectives. Instead EPAs have turned out to be free trade agreements, which can have a detrimental effect to the Kenyan economy. We are concerned that the proposed EPAs will contribute to the loss of our regional market. While we acknowledge that the EU continues to be an important destination of Kenya’s exports, the market share for Kenyan goods in East Africa and other African countries is growing particularly under the East Africa Community (EAC) and Common Market for East and Southern Africa (COMESA) regional groupings. For instance Kenya’s exports to its partners in the EAC rose rapidly from 7.4 per cent of total exports in 1990 to 29 percent of exports in 2004 (EPAs through the Lens of Kenya, Econews and Traidcraft,2005). Together with COMESA, this forms an important market share for Kenya. We therefore call upon our government to take into account these in any trade agreements including EPAs. In addition we are convinced that the free trade agreements under EPAs will undermine our government’s national development plans. The government has formulated the Strategy for Revitalization of Agriculture and the Economic Recovery Strategy both of which recognize the need to attain national food security. The Strategy for the Revitalization of Agriculture aims to restore profitability and viability of the agricultural sector as a source of gainful employment and to empower households to have resources to access adequate nutritious food. But Kenya is undertaking its strategy to undertake revitalization of agriculture in the face of liberalization. The challenge however is; will Kenya be able to implement and realize the benefits of these plans in the face of increase of cheap imports when the Economic Partnership Agreements comes into force in 2007? We are of the opinion that if EPAs are to contribute to Kenya’s economic development they must be designed specifically to complement the national development strategies and should not be allowed to pressurize the government to adopt new or different approaches that are opposed to its national development plans. Agriculture still remains the dominant sector in the economy of Kenya. The sector employs 77 percent both directly and indirectly of the labour force. It contributes 75% to industrial raw materials. The poor performance of Agriculture sector in the past two decades led to an increase in food insecurity and unemployment in the country. With the advent of the Structural Adjustment Programmes in the 1980’s, the government reduced its support to agriculture in the form of price controls and drastic reduction of government support in funding development. We are concerned that the food security and value addition initiatives currently on going will be under serious threats from the subsidized products of the EU. Furthermore, we note that for the past two years Kenya’s national budget has been funded 95% locally through revenue collection. If implemented in its current form, EPAs will cut government revenue as a result of the elimination of import taxes on goods and services from the EU. We therefore call upon the Minister of Trade and Industry to take into consideration the following options as he represents Kenya in the EPA review meeting on the 24th and 25th May 2007 in Brussels, Belgium: More time: We acknowledge that the deadline for concluding EPA negotiations is December 31st 2007. However, majority of the citizens and the law makers do not have sufficient information and understanding to inform this kind of a decision. Inclusiveness The current negotiators have largely included the European Commission and government negotiators leaving out other crucial stakeholders such as the citizens and their members of parliament. For EPAs to be legitimate we appeal for the inclusion of all stakeholders into the negotiating process. Policy space and national sovereignty If EPAs are to be implemented in their current state they would restrict our government’s ability to pursue their own development strategies. EPA negotiations should therefore be aligned to national democratic processes such as parliamentary ratification. Kenya is a signatory to the International Covenant on Economic, Social and Cultural Rights and is therefore duty-bound under international law to respect, protect and fulfill the human right to food, education, shelter and adequate standards of living. By signing of EPAs without further consultation with the various stakeholders and without complete study on the social and environmental impacts, the state will fail with its obligations to respect and protect the rights of its citizens. If the state signs this agreement it is bound to violate the right to adequate sustainable of living of its citizens. In conclusion, we reiterate that trade should be at the service of people and not for profit. Hence trade policies should enhance people’s livelihoods through the protection of human rights. It is for this reason that we the church representatives affirm the principles of justice, equity and protection of human rights. These principles should guide any trade policy making and agreements. 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